Fenton
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Obama administration pushes banks to make home loans to people with weaker credit - Washington Post
" The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.
President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession.
In response, administration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs — including those offered by the Federal Housing Administration — that insure home loans against default."
Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default.
“I think the ability of newly formed households, which are more likely to have lower incomes or weaker credit scores, to access the mortgage market will make a big difference in the shape of the recovery,” Duke said last month. “Economic improvement will cause household formation to increase, but if credit is hard to get, these will be rental rather than owner-occupied households.”"
Ridiculous.
Before Obama became a State Senator, he shook down banks for " discriminatory practices". In 1995 he was plaintiffs attorney for “Buycks-Roberson v. Citibank Fed. Sav. Bank.” and was listed as the lead attorney for several of the plaintiffs.
Buycks-Roberson v. Citibank Fed. Sav. Bank Fair Housing/Lending/Insurance
Docket / Court 94 C 4094 ( N.D. Ill. ) FH-IL-0011
State/Territory IllinoisCase Summary
"Plaintiffs filed their class action lawsuit on July 6, 1994, alleging that Citibank had engaged in redlining practices in the Chicago metropolitan area in violation of the Equal Credit Opportunity Act (ECOA), 15 U.S.C. 1691; the Fair Housing Act, 42 U.S.C. 3601-3619; the Thirteenth Amendment to the U.S. Constitution; and 42 U.S.C. 1981, 1982. Plaintiffs alleged that the Defendant-bank rejected loan applications of minority applicants while approving loan applications filed by white applicants with similar financial characteristics and credit histories. Plaintiffs sought injunctive relief, actual damages, and punitive damages.U.S. District Court Judge Ruben Castillo certified the Plaintiffs’ suit as a class action on June 30, 1995. Buycks-Roberson v. Citibank Fed. Sav. Bank, 162 F.R.D. 322 (N.D. Ill. 1995). Also on June 30, Judge Castillo granted Plaintiffs’ motion to compel discovery of a sample of Defendant-bank’s loan application files. Buycks-Roberson v. Citibank Fed."
Many of the plaintiffs came away with "coupons" and small cash disbursements.
But whats alarming was the addition Obama's administration made to the massive bailout that was the Federal Government taking Fannie and Freddie into Conervatorhip in 2008. Together they held over 5 and half TRILLION dollars in loans and securities, many low quality traSh loans and securities they purchased in an effort to hide the massive corruption that was taking place at the two GSE's, Corruption that led to a SEC investigation in 2004 and a SEC investigation in 2011 for massive securities fraud.
" The Obama Administration used the 2009 Christmas media lull for several key mortgage-market agenda items, on top of the its Congressional health care legislation.
1) On Christmas Eve the Obama Administration issued executive orders to change the amount – from $400 billion to unlimited — that the US federal government would commit to Fannie Mae and Freddie Mac in the event those agencies/companies could no longer service the mortgages it held/guaranteed. It also deregulated the total amount of mortgages that Fannie and Freddie can own or guarantee, enabling the GSEs to fully return to the lower-quality, higher-risk segments of the mortgage market. Fannie and Freddie currently finance roughly three-quarters of all new mortgages. The order empowers the Obama Administration’s Treasury Department to pressure the GSEs to hold more subprime/non-performing mortgages, instead of clearing the risk off their balance sheets.
2) The Obama “Pay Czar” made public statements supporting multi-million-dollar incentive-based compensation packages for senior Fannie Mae and Freddie Mac executives…despite exactly that structure having been singled out by regulators as a primary cause of the GSE violations that enabled the housing/financial crisis. The Obama Administration is incentivizing Fannie’s and Freddie’s CEOs with up to $6 million per year, and senior executives can also receive hefty cash payouts under a similar target-based structure as existed during the bubble. Both companies/agencies currently operate under taxpayer-funded bailout. The Pay Czar cited the unique stresses of the jobs, despite the fact that they can now make roughly 12-times more than the President of the United States."
On top of this, Obama's wants to appoint a Democrat Politician, Mel Watt, to run Fannie Mae and Freddie Mac. This is truly a case of the" Fox guarding the hen house" as Mel Watt is a member of the House Congressional Black Caucus which supports the same policies that almost bankrupted the banking sector and helped created millions of home foreclosures and has zero regulatory experience.
His appointment would virtually guarantee a return to the corruption that allowed Fannie and Freddie's massive debt to be added to our Country's already exploding debt.
" The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.
President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession.
In response, administration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs — including those offered by the Federal Housing Administration — that insure home loans against default."
Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default.
“I think the ability of newly formed households, which are more likely to have lower incomes or weaker credit scores, to access the mortgage market will make a big difference in the shape of the recovery,” Duke said last month. “Economic improvement will cause household formation to increase, but if credit is hard to get, these will be rental rather than owner-occupied households.”"
Ridiculous.
Before Obama became a State Senator, he shook down banks for " discriminatory practices". In 1995 he was plaintiffs attorney for “Buycks-Roberson v. Citibank Fed. Sav. Bank.” and was listed as the lead attorney for several of the plaintiffs.
Buycks-Roberson v. Citibank Fed. Sav. Bank Fair Housing/Lending/Insurance
Docket / Court 94 C 4094 ( N.D. Ill. ) FH-IL-0011
State/Territory IllinoisCase Summary
"Plaintiffs filed their class action lawsuit on July 6, 1994, alleging that Citibank had engaged in redlining practices in the Chicago metropolitan area in violation of the Equal Credit Opportunity Act (ECOA), 15 U.S.C. 1691; the Fair Housing Act, 42 U.S.C. 3601-3619; the Thirteenth Amendment to the U.S. Constitution; and 42 U.S.C. 1981, 1982. Plaintiffs alleged that the Defendant-bank rejected loan applications of minority applicants while approving loan applications filed by white applicants with similar financial characteristics and credit histories. Plaintiffs sought injunctive relief, actual damages, and punitive damages.U.S. District Court Judge Ruben Castillo certified the Plaintiffs’ suit as a class action on June 30, 1995. Buycks-Roberson v. Citibank Fed. Sav. Bank, 162 F.R.D. 322 (N.D. Ill. 1995). Also on June 30, Judge Castillo granted Plaintiffs’ motion to compel discovery of a sample of Defendant-bank’s loan application files. Buycks-Roberson v. Citibank Fed."
Many of the plaintiffs came away with "coupons" and small cash disbursements.
But whats alarming was the addition Obama's administration made to the massive bailout that was the Federal Government taking Fannie and Freddie into Conervatorhip in 2008. Together they held over 5 and half TRILLION dollars in loans and securities, many low quality traSh loans and securities they purchased in an effort to hide the massive corruption that was taking place at the two GSE's, Corruption that led to a SEC investigation in 2004 and a SEC investigation in 2011 for massive securities fraud.
" The Obama Administration used the 2009 Christmas media lull for several key mortgage-market agenda items, on top of the its Congressional health care legislation.
1) On Christmas Eve the Obama Administration issued executive orders to change the amount – from $400 billion to unlimited — that the US federal government would commit to Fannie Mae and Freddie Mac in the event those agencies/companies could no longer service the mortgages it held/guaranteed. It also deregulated the total amount of mortgages that Fannie and Freddie can own or guarantee, enabling the GSEs to fully return to the lower-quality, higher-risk segments of the mortgage market. Fannie and Freddie currently finance roughly three-quarters of all new mortgages. The order empowers the Obama Administration’s Treasury Department to pressure the GSEs to hold more subprime/non-performing mortgages, instead of clearing the risk off their balance sheets.
2) The Obama “Pay Czar” made public statements supporting multi-million-dollar incentive-based compensation packages for senior Fannie Mae and Freddie Mac executives…despite exactly that structure having been singled out by regulators as a primary cause of the GSE violations that enabled the housing/financial crisis. The Obama Administration is incentivizing Fannie’s and Freddie’s CEOs with up to $6 million per year, and senior executives can also receive hefty cash payouts under a similar target-based structure as existed during the bubble. Both companies/agencies currently operate under taxpayer-funded bailout. The Pay Czar cited the unique stresses of the jobs, despite the fact that they can now make roughly 12-times more than the President of the United States."
On top of this, Obama's wants to appoint a Democrat Politician, Mel Watt, to run Fannie Mae and Freddie Mac. This is truly a case of the" Fox guarding the hen house" as Mel Watt is a member of the House Congressional Black Caucus which supports the same policies that almost bankrupted the banking sector and helped created millions of home foreclosures and has zero regulatory experience.
His appointment would virtually guarantee a return to the corruption that allowed Fannie and Freddie's massive debt to be added to our Country's already exploding debt.
